Credit Suisse Brazil Hedge Fund Avoids Emerging-Markets Damage

Feb 12 2014 | 12:18pm ET

Credit Suisse's Brazilian hedge fund posted only a slight decline in the face of economic turmoil in emerging markets—including Brazil.

Credit Suisse Hedging-Griffo's Fundo Verde dropped 0.06% last month. The fund's stock holdings suffered the loss, which was offset by its fixed-income and currency investments.

"There was in fact excess optimism in prices, which was corrected throughout January and the start of February," Hedging-Griffo told investors this week. And the firm sought to shift blame for the troubles from the U.S. and China.

Hedging-Griffo wrote that uncertainty in those markets is "particularly toxic" for emerging markets, but that troubles in the latter "won't end because of a decision by the Federal Reserve of the Chinese Communist Party."

"Prices have already started to adjust and, in some cases, policies too. But this movie is far from over."

Fundo Verde manages more than 20 billion Brazilian reais (US$8.3 billion) in assets.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of